U-Swirl, Inc. Receives Notice of Default Under the Loan and Security Agreement
October 28, 2015 at 02:23 pm EDT
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On October 28, 2015, U-Swirl, Inc. received a notice of default under the loan and security agreement, dated January 16, 2014, by and between the company and its parent, Rocky Mountain Chocolate Factory, Inc. The notice cited the company's failure to comply with the minimum operating performance covenant set in the loan and security agreement, which required the company to maintain its consolidated adjusted EBITDA at a certain level. Failure to do so is an event of default under the loan and security agreement. Rocky Mountain Chocolate Factory, Inc. declared that effective October 28, 2015, interest on the obligations will accrue at the default rate of 15% per annum.
U-Swirl, Inc. is engaged in providing frozen yogurt. The Company offers U-Swirl Frozen Yogurt concept, which offers guests with a choice in frozen yogurt by providing an assortment of non-fat and low-fat flavors, including tart, traditional and no sugar-added (NSA) options and various toppings, including seasonal fresh fruit, sauces, candy and granola. The Company offers a menu to search for flavors, sort columns, and check nutritional information and ingredients. The Company offers Nonfat Frozen Yogurt, Original Tart Frozen Yogurt, Greek Nonfat Frozen Yogurt, Lowfat Frozen Yogurt, Premium Frozen Yogurt, NSA Frozen Yogurt, Frozen Custard and Non-Dairy Sorbet. As of August 31, 2015, the Company had nine Company-owned cafes and 243 franchised cafes. The Company's U-Swirl-n-Go Store franchises are limited-product stores within non-traditional locations, such as convenience stores, airports, hotels and other mass gathering areas. The Company's subsidiary is U-Swirl International, Inc.
U-SWIRL, INC. 
